8 Exemption from liquidity requirements

(2)The trustee in respect of the debt securities of Foodstuffs is exempted from section 157ZA of the Act in respect of those securities.

9 Condition of exemptions

(1)The exemptions in clauses 5 to 8 are subject to the condition that Foodstuffs must not allot any debt security offered to the public in New Zealand unless the subscriber has, before subscription, received written notification that Foodstuffs is exempted, until 1 December 2014, from—

(a)the requirement to have a current credit rating in section 157I of the Act; and

(2)The notification referred to in subclause (1) may be included in any prospectus or investment statement or application form for the debt security.

10 Additional conditions relating to exemption from requirement to have current credit rating

The exemption in clause 5 is subject to the additional conditions that—

(a)debt securities offered by Foodstuffs to the public in New Zealand are offered only to persons who are members of Foodstuffs; and

(b)Foodstuffs must not disclose an assessment of its creditworthiness that is in substance a credit rating (whether called a rating, grading, scoring, ranking, or by another name) issued by an agency that is not approved by the Bank under section 157J of the Act.

Dated at Wellington this 9th day of May 2011.

Grant Spencer,Deputy Governor.

Statement of reasons

This notice comes into force on the day after its notification in the Gazette and expires on 1 December 2014.

Foodstuffs (Wellington) Co-operative Society Limited (Foodstuffs) is a deposit taker within the meaning of Part 5D of the Reserve Bank of New Zealand Act 1989 (the Act). This notice exempts Foodstuffs, and in some cases its trustee, from the following prudential requirements in the Act:

The Reserve Bank of New Zealand, after taking into account the principles set out in section 157F of the Act and satisfying itself as to the matters set out in section 157G(2) of the Act, considers it is appropriate to grant the exemptions because—

members would not gain material benefits or additional protections if Foodstuffs complied with the prudential requirements:

the additional direct and indirect costs of complying with the prudential requirements are unduly onerous and burdensome in the circumstances. Those circumstances are that the debt securities offered by Foodstuffs are not offered as investments to customers but are offered to members as part of an ongoing business relationship connected with the grocery industry. Additionally, the prudential requirements cannot sensibly be applied to Foodstuffs unless it significantly changes its business and capital structure. Compliance with the prudential requirements would be unduly onerous and burdensome:

Foodstuffs is a wholesale grocery merchant that restricts offers of debt securities to members of the public who are its members and does not extend such offers to the public at large, and therefore the exemptions are consistent with the maintenance of a sound and efficient financial system.

Reprints notes

1General

This is a reprint of the Deposit Takers (Foodstuffs (Wellington) Co-operative Society Limited) Exemption Notice 2011 that incorporates all the amendments to that notice as at the date of the last amendment to it.

2Legal status

Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.